contestada

The Payans have just learned that the bank will approve them for a mortgage at an APR of 4.3% for 30 years if they meet the back-end ratio needs to be calculated with the actually monthly payment. Use this monthly payment formula to calculate the Payans' monthly mortgage

The Payans have just learned that the bank will approve them for a mortgage at an APR of 43 for 30 years if they meet the backend ratio needs to be calculated w class=

Respuesta :

Assuming the principal amount of money is $250,00, we can substitute in the equation:

principal= $250,000

interest= 0.043

t=30 years,

then:

[tex]\begin{gathered} M=\frac{250,000(\frac{0.043}{12})(1+\frac{0.043}{12})^{12\cdot30}}{(1+\frac{0.043}{12})^{12\cdot30}-1} \\ M=1,237.178 \\ \text{rounding to: 1,237.18} \end{gathered}[/tex]